Equipment
Tangible assets used in business operations to produce goods or provide services, typically capitalized and depreciated over their estimated useful lives.
Equipment
Tangible assets used in a business’s operations to produce goods or provide services, typically depreciated over their useful lives.
For instance, a construction company might own excavators, bulldozers, and cranes recorded as equipment on the balance sheet, with each item depreciated based on its expected useful life and salvage value.
Equipment represents a capital investment that enhances operational capabilities and efficiency. Costs include purchase price, delivery, installation, and training expenses. Proper equipment management involves maintenance scheduling, utilization monitoring, and replacement planning to optimize performance and minimize downtime.